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Step 9: Dealing with Homeowners Associations

Step 8: Insurance

When buying a home, some people get overwhelmed with the down-payment alone. But there are a number of things that contribute to the overall cost of owning a home. One very important factor to consider is homeowners’ insurance. If you own a house, you need it, and most lenders require it. Think about it. If your home were destroyed in a fire, could you replace it without the help of homeowners’ insurance? When shopping for homeowners’ insurance, check with several different companies for rate quotes. You might also look into bundling your insurance policies. Some companies offer discounts if you use the same carrier for both automobile and homeowners’ policies. To save money on insurance, you can also look at increasing your deductible. The deductible is the amount of money you have to pay toward a loss before your insurance takes over. Home insurance deductibles usually start around $250. But, if you increase your deductible to $500 - you'll save up to 12% on your premiums,$1,000 - Save up to 24%, $2,500 - Save up to 30%, $5,000 - Save up to 37%. When you buy a home, understanding the total costs involved will help put your mind at ease.